TL;DR
Volkswagen is expected to launch the Tera, a new sub-compact SUV, in India by 2026, featuring a localized platform and a 1.0-litre TSI engine.
Volkswagen is reportedly preparing to enter India's competitive sub-compact SUV market with a new model named the Tera, with a potential launch by 2026. The Tera, which made its debut in Brazil earlier this year, is expected to be tailored for the Indian market to comply with local trends and tax regulations, particularly with a length under four meters.
The India-spec Volkswagen Tera is anticipated to share underpinnings with the Skoda Kylaq, including the localized MQB A0 IN platform manufactured at Skoda's Pune plant. This shared architecture suggests similar driving dynamics and structural safety. Under the hood, the Tera could feature a 1.0-litre TSI turbo-petrol engine, capable of producing 115 HP and 178 Nm of torque, available with either a six-speed manual or a torque-converter automatic transmission. While specific features are still speculative, higher variants are likely to include a large touchscreen infotainment system, wireless smartphone connectivity, a 360-degree surround view, and ventilated seats, with a potential 5-star crash rating.

